The latest figures from Stats NZ released today, November 5, show unemployment in New Zealand has risen to 5.3 per cent, the highest it’s been in nine years.
In the September 2025 quarter the employment rate was 66.6 per cent, annual wage inflation was 2.1 per cent, and the average ordinary time hourly earnings were $43.60.
Unemployment was 5.2 per cent in the previous June quarter.
“The unemployment rate has been over five per cent for the last four quarters,” labour market spokesperson Jason Attewell says.
“The last time the unemployment rate was 5.3 per cent was in the December 2016 quarter.”
Finance Minister Nicola Willis says the latest unemployment figures highlight the importance of the Government’s ongoing work to rebuild the economy and deliver more job opportunities for Kiwis.
She says the data released by Stats NZ is broadly in line with pre-election and more recent forecasts.
“Our Government is determined that New Zealanders who are seeking work can find it.
“That’s why we’re so focused on strengthening the foundations from which local businesses can grow and create new jobs.
“Since being elected we have worked hard to fix the damage done to our economy during a period of reckless Government spending, sky-high inflation and rising interest rates.
“We’ve successfully fixed the foundations. Taxes have been reduced. Inflation is back in band. Interest rates have fallen. Recovery is under way.
“There’s more to do to accelerate New Zealand’s economic recovery. We are working to ensure more Kiwi employers can be confident about starting, expanding and creating new jobs. That’s why we are driving our going for growth plan.
“We’ve delivered the Investment Boost tax incentive for businesses, accelerated $7 billion of major public infrastructure projects pre-Christmas, fast-tracked consents for job-rich privately funded projects, opened new markets for our exporters, welcomed in new investment from around the world, reduced red tape for businesses and championed growth policies in sectors from agriculture through to our space industry and the film sector.
“New Zealanders have worked incredibly hard for economic recovery. Now is not the time for expansive new taxes, or a return to reckless fiscal management.
“Now is the time for our Government’s plan to back aspiration, effort and job-creation.”
Critics of the coalition Government have been quick to jump on the new unemployment figure, with the New Zealand Council of Trade Unions (NZCTU) saying the rise is “no surprise”.
The NZCTU is calling on the Government to act in response to the new data released by Stats NZ.
“The labour market took another turn for the worse today, with unemployment growing, underemployment growing, fewer hours being worked, and wages are not keeping up with inflation,” NZCTU economist Craig Renney says.
“This data is another sign that the Government’s economic plan is not working.
“Unemployment is particularly acute for young people – with 15,500 more 15–24-year-olds unemployed than at the election.
“Māori unemployment is 10.5 per cent, and Pasifika unemployment is 12.1 per cent.
“A record 406,000 people are underutilised – meaning they want more work, or access to work, but can’t get it.
“Wages increased at their lowest rate for five years, with the Labour Cost Index showing wage inflation of 2.1 per cent, well below actual consumer price inflation of three per cent.
“44 per cent of workers saw no pay increase at all this year and 68 per cent saw a pay increase below inflation.
“Both public and private sector wages are growing at less than inflation.
“Unemployment in New Zealand is now well above the OECD average and comparable countries.
“39,000 fewer people are in full-time work. 160,000 people are unemployed – the highest number since March, 1994.”
Ricardo Menéndez March, the Green Party’s spokesperson for social development and employment, says the Government “must take ownership for its decision to cut thousands of jobs, and then punish those left unemployed”.
“Since mid-2023, this Government has driven the loss of 150,000 jobs in Aotearoa, including 80,000 jobs in the 15-35 age bracket.
“This isn’t just an economic crisis. The Government’s economic decisions are creating a social crisis with an immeasurable, disproportionate impact on our young people.
“With unemployment rising to 15.2 per cent for 15-24-year-olds, and 5.2 per cent for 25-34-year-olds, it’s clear this Government is punching down on young people at a disproportionate rate.”
Menéndez March says the Government has cut jobs and punished the unemployed instead of “taxing the wealthy few to create thousands of jobs and quality infrastructure”.
“It never had to be this way. We have a plan to provide people with meaningful work.
“Our Green Jobs Guarantee will deliver an initial 40,000 jobs to rebuild our infrastructure, restore nature, and build homes for people to live in.
“Our Future Workforce Agency, Mahi Anamata, will actively plan for the skills we need.
“We’ll revitalise and supercharge the roaring success of Jobs for Nature, and ensure everyone who wants a good, decent, living wage-paying job will get one.”
And the Labour Party says the new unemployment figure is “proof the economy is going backwards under [Prime Minister] Christopher Luxon”.
“Two years ago, Christopher Luxon promised to make the economy better,” Labour finance and economy spokesperson Barbara Edmonds says.
“Instead, he’s made it worse. The unemployment rate is now at its highest level in nearly a decade.
“That’s 160,000 people unemployed, the highest number since 1994 and about the same size as the population of Tauranga.
“Under National, tens of thousands of New Zealanders have lost their jobs. Every day, more than 200 Kiwis pack up and leave for jobs overseas that should be available here.
“For people under 24, the unemployment rate is 15.2 per cent, up from 13.1 per cent last year.
“It’s no wonder so many people are leaving. These aren’t just statistics, these are families losing their livelihoods.
“Luxon’s Government is so out of touch that even his own Finance Minister told people not to take losing their jobs personally.
“Labour has a plan to grow the economy and create jobs – building a productive New Zealand where hard work pays, healthcare is affordable, and our kids can see a future here.
“New Zealand is going backwards under National. New Zealanders can’t afford another three years of this Government.”
